# LUCRUM CAPITAL SECURITIES, INC. X-17A-5 (2024-03-26) — Broker-dealer annual report

- Company: LUCRUM CAPITAL SECURITIES, INC.
- Form: X-17A-5
- Filed: 2024-03-26
- Period: 2023-12-31
- Accession: 0001937374-24-000005
- CIK: 1937374
- File #: 8-70955
- Type: Broker-dealer
- Material weakness: No
- Auditor: The Otaigbe Group LLC
- Auditor location: Manassas, VA
- Contact: Edrees Feda
- Phone: 703-832-1793
- Email: support@otaigbe.com
- Website: otaigbe.com
- Signed by: Edrees Feda (CEO)

Original filing: https://www.sec.gov/Archives/edgar/data/1937374/000193737424000005/LucrumPublic23.pdf

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## **FINANCIAL STATEMENT WITH REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

**For the Period from July 26, 2023 (Date of Registration) through December 31, 2023**

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

0MB APPROVAL 0MB Number 3235-0123 Expires Nov 30, 2026 Est,mated average burden hours per response 12

**ANNUAL REPORTS FORM X-17A-5 PART Ill** 

| hours per response<br>12 |  |
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| SEC FILE NUMBER          |  |
| 8-70955                  |  |

#### FACING PAGE

Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934

| FILING FOR THE PERIOD BEGINNING _________                                                                                                                | 07 /26/23                                                  |         | 12/31 /23<br>AND ENDING ________ | _                                 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|---------|----------------------------------|-----------------------------------|
|                                                                                                                                                          | MM/DD/YY                                                   |         |                                  | MM/DD/YY                          |
|                                                                                                                                                          | A. REGISTRANT IDENTIFICATION                               |         |                                  |                                   |
| NAME OF FIRM: Lucrum Capital Securities                                                                                                                  |                                                            |         |                                  |                                   |
| TYPE OF REGISTRANT {check all applicable boxes):<br>D Security-based<br>0 Broker-dealer<br>cJ Check here 1f respondent is also an OTC derivatives dealer | swap dealer                                                |         | D Major security-based           | swap participant                  |
| ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.)                                                                                      |                                                            |         |                                  |                                   |
| 1750 Tysons Blvd, Suite 1500                                                                                                                             |                                                            |         |                                  |                                   |
|                                                                                                                                                          | (No. and Street)                                           |         |                                  |                                   |
| McLean                                                                                                                                                   |                                                            | VA      |                                  | 22102                             |
| (City)                                                                                                                                                   |                                                            | (State) |                                  | (Zip Code)                        |
| PERSON TO CONTACT WITH REGARD TO THIS FILING                                                                                                             |                                                            |         |                                  |                                   |
| Edrees Feda                                                                                                                                              | 703-832-1793                                               |         |                                  | efeda@lucrumcap1talsecur1I1es com |
| (Name)                                                                                                                                                   | (Area Code - Telephone Number)                             |         | (Email Address)                  |                                   |
|                                                                                                                                                          | B. ACCOUNTANT IDENTIFICATION                               |         |                                  |                                   |
| INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*<br>The Otaigbe Group LLC                                                       |                                                            |         |                                  |                                   |
|                                                                                                                                                          | (Name - if individual, state last, first, and middle name) |         |                                  |                                   |
| 9720 Capital Court, Suite #1000                                                                                                                          | Manassas                                                   |         | VA                               | 20110                             |
| (Address)<br>05/24/2022                                                                                                                                  | (City)                                                     |         | (State)<br>6936                  | (Zip Code)                        |
| T"<br>"'""'"'°<br>of                                                                                                                                     | ••fh ,CAOe)Uf a,ohcableJ FOR OFFICIAL USE ONL V            |         | (,CAOe Seglma<loo ,,mW,          | If a,ohcableJ                     |
|                                                                                                                                                          |                                                            |         |                                  |                                   |

• Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e}(l}(ii), 1f applicable.

Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid 0MB control number.

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#### **OATH OR AFFIRMATION**

I, Edrees Feda swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of Lucrum Capital Securities as of

\_D\_e\_c\_e\_m\_b\_e\_r\_3\_1 \_\_\_\_\_\_\_\_ ., 2~, is true and correct. I further swear (or affirm) that neither the company nor any partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as that of a customer.

![](_page_2_Figure_3.jpeg)

Notary Public

#### **This filing\*\* contains (check all applicable boxes):**

- **iii!!** (a) Statement of financial condition.
- **iii!!** (b) Notes to consolidated statement of financial condition.
- **D** (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in§ 210.1-02 of Regulation S-X).
- **D** (d) Statement of cash flows.
- D (e) Statement of changes in stockholders' or partners' or sole proprietor's equity.
- D (f) Statement of changes in liabilities subordinated to claims of creditors.
- □ (g) Notes to consolidated financial statements.
- D (h) Computation of net capital under 17 CFR 240.1Sc3-1 or 17 CFR 240.18a-1, as applicable.
- 0 (i) Computation of tangible net worth under 17 CFR 240.18a-2.
- D (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.1Sc3-3.
- 0 (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable.
- 0 (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.1Sc3-3.
- 0 (m) Information relating to possession or control requirements for customers under 17 CFR 240.1Sc3-3.
- 0 (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable.
- 0 '(o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.1Sc3-1, 17 CFR 240.18a-l, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist.
- O (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition.
- **iii!!** (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable.
- O (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
- O (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
- **iii!!** (t) Independent public accountant's report based on an examination of the statement of financial condition.
- O (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable.
- **O** (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
- O (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
- O (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.1Sc3-le or 17 CFR 240.17a-12, as applicable.
- O (y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k).
- D (z) Other:--------------------------------------
- \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5/e)(3) or 17 CFR 240.18a-7/d)(2}, as applicable.

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## **TABLE OF CONTENTS**

|                                                         | Page No.    |
|---------------------------------------------------------|-------------|
| REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 1           |
| FINANCIAL STATEMENT                                     |             |
| Statement of Financial Condition                        | 2           |
| Notes to Financial Statements                           | 3<br>-<br>5 |

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+ 11103) 963~5195 m

support@otaigbe.com El

www.otaigbe.com II 9720 capital Court Suite #100 l:JI Manassas, VA 20112

# **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

Board of Directors

Lucrum Capital Securities, Inc.

#### **Opinion on the Financial Statements**

We have audited the accompanying statement of financial condition of Lucrum Capital Securities, Inc. as of December 31, 2023, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of Lucrum Capital Securities, Inc. as of December 31, 2023, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

#### **Basis for Opinion**

These financial statements are the responsibility of Lucrum Capital Securities, Inc.'s management. Our responsibility is to express an opinion on Lucrum Capital Securities, Inc.'s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to Lucrum Capital Securities, Inc. in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

The Otaigbe Group 9720 Capital Court Suite #100 Manassas, VA 20110 03/20/2024

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## **STATEMENT OF FINANCIAL CONDITION December 31, 2023**

## **ASSETS**

| Cash                                       | \$ | 77,749   |
|--------------------------------------------|----|----------|
| Prepaid expenses                           |    | 3,294    |
| Fixed assets, net of accumulated           |    |          |
| decpreciation of \$300                     |    | 2,329    |
| Due from affiliates                        |    | 3,600    |
| Total assets                               | \$ | 86,972   |
| LIABILITIES AND STOCKHOLDER'S EQUITY       |    |          |
| Accounts payable and accrued expenses      | \$ | 5,340    |
| Related party payable                      |    | 25,211   |
| Total liabilities                          |    | 30,551   |
| Additional Paid in Capital                 |    | 136,460  |
| Retained deficit                           |    | (80,039) |
| Total stockholder's equity                 |    | 56,421   |
| Total liabilities and stockholder's equity | \$ | 86,972   |

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## **NOTES TO FINANCIAL STATEMENT December 31, 2023**

#### Note 1 **Organization and nature of business**

Lucrum Capital Securities (the "Company"), was formed in 2021 and is a Virginia corporation. The Company is a wholly-owned subsidiary of Lucrum Companies Inc. (the "Parent"). The Company's primary business is that of a securities broker-dealer that engages in the private placement of securities of private funds in accordance with the membership agreement with the Financial Industry Regulatory Authority ("FINRA"). The Company is a registered broker under the Securities Exchange Act of 1934 on July 26, 2023 and is a member of FINRA and the Securities Investor Protection Corporation ("SIPC").

## Note 2 **Summary of significant accounting policies**

## **Cash and Cash Equivalents**

The Company considers all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. There were no cash equivalents at December 31, 2023.

#### **Estimates**

The preparation of financial statements in conformity with accounting principles generally accepted in the United States (GAAP) requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Such estimates include useful lives and valuation of property and equipment.

## **Revenue recognition**

The Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance requires an entity to follow a five-step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation.

In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. Revenues from contracts with customers are comprised of placement fees. Such fees are recognized at the point in time when the Company's performance under the terms of the contractual arrangement is completed, which is typically at the close of a transaction.

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## **NOTES TO FINANCIAL STATEMENT December 31, 2023**

#### Note 2 **Summary of significant accounting policies (continued)**

### **Fair value of financial instruments**

The carrying amounts of financial instruments, including cash, prepaid expenses, deposits, and accounts payable and accrued expenses, approximates fair value due to the short term maturities of these assets and liabilities.

#### **Income taxes**

The member of the Company has elected to have the Company taxed as a partnership for income tax purposes. Accordingly, the Company is not subject to federal or state income taxes. All taxable income/loss and tax credits are reflected on the income tax returns of the member.

#### **Income tax positions**

The Financial Accounting Standards Board ("FASB") has issued a standard that clarifies the accounting and recognition of income tax positions taken or expected to be taken in the Company's income tax returns. The Company has analyzed tax positions taken for filing with the Internal Revenue Service and all state jurisdictions where it operates. The Company believes that income tax positions will be sustained upon examination and does not anticipate any adjustments that would result in a material adverse affect on the Company's financial condition, results of operations or cash flows. Accordingly, the Company has not recorded any reserves or related accruals for interest and penalties for uncertain income tax positions.

If the Company incurs interest or penalties as a result of unrecognized tax positions the policy is to classify interest accrued with interest expense and penalties thereon with operating expenses. The Company is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress.

#### **Property and equipment**

Property and equipment is stated at cost. Depreciation is calculated on the straight-line method over the estimated useful life of the related asset.

| Description               | Estimated<br>Useful Life |
|---------------------------|--------------------------|
| Property<br>and equipment | 3 years                  |

Depreciation expense was \$300 for the period from July 26, 2023 (date of registration) through December 31, 2023.

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## **NOTES TO FINANCIAL STATEMENT December 31, 2023**

#### Note 2 **Summary of significant accounting policies (continued)**

#### **Subsequent events**

For purposes of preparing financial statements the Company considered events through February xx, 2024, the date the financial statements were available for issuance. Subsequent to the end of the year, the financial markets have been severely impacted by the effects of the Coronavirus pandemic. The Company continues to evaluate the current and long-term impact of the pandemic on Company operations, but projections to future operations are not known at this time.

#### Note 3 **Net capital requirements**

The Company is subject to the Securities and Exchange Commission's Uniform Net Capital Rule (Rule 15c3-1), which requires the maintenance of a minimum net capital balance and requires that the Company's aggregate indebtedness to net capital, as defined, shall not exceed 15 to 1. At December 31, 2023 the Company's net capital was \$47,198 which was \$42,198 in excess of its required net capital of \$5,000. The Company's aggregate indebtedness to net capital was 0.65 to 1.

## Note 4 **Exemption from Rule 15c3-3**

The Company will not claim exemption from the provisions of Rule 15c3-3 of the SEC, in reliance on footnote 74 to SEC Release 34-70073.

## Note 5 **Concentrations**

The Company maintains its cash at financial institutions in bank deposits, which may exceed federally-insured limits. The Company has not experienced any losses in such accounts and the Company believes it is not exposed to any significant risk with respect to cash.

### Note 6 **Commitments and contingencies**

The Company does not have any commitments, guarantees or contingencies including arbitration or other litigation claims that may result in a loss or future obligation. The Company is not aware of any threats or other circumstances that may lead to the assertion of a claim at a future date.


Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.